San Francisco, January 25, 2012 - SquareTrade, the leading independent consumer warranty provider, today announced a successful $238 million growth equity investment led by affiliates of Bain Capital, LLC that will position the company to drive the next phase of growth in the consumer warranty market. Other financial terms of the private transaction were not disclosed.
“We are very excited to partner with SquareTrade, which is disrupting a $20+ billion global industry with its innovative approach to warranties.” said Mike Krupka, a Managing Director of Bain Capital Ventures. “We were attracted by the incredibly high satisfaction levels among consumers and retailers, along with the vision of co-founders Steve Abernethy and Ahmed Khaishgi, and their ability to execute the plan to build the first great brand in the space,” added Phil Loughlin, a Managing Director of Bain Capital Partners. The investment is being made jointly by the firm’s private equity and venture capital affiliates.
Based in San Francisco, SquareTrade offers a branded warranty focused on delivering great value and no-hassle service for consumers. SquareTrade’s commitment to delivering an exceptional customer experience has yielded excellent consumer ratings that are easily researched online. Customers can buy warranties directly from www.squaretrade.com, as well as through more than 30 retailers and marketplaces.
The investment caps a successful 2011 for SquareTrade, which saw sales nearly triple year over year, and the addition of some of the largest national and global retailers who are offering the company’s warranty services to their customers. SquareTrade said it expects triple-digit revenue growth again in 2012.
“SquareTrade has been profitable and growing rapidly for several years, and we have been approached by many top investment firms. We concluded that Bain Capital is the ideal partner to help us continue growing SquareTrade into the premier brand in the category,” stated Abernethy, who serves as CEO. “We have a long term view of investing in service, technology and brand awareness to make SquareTrade uniquely high value, easy to research and easy to use. Bain Capital shares the vision, and has the resources and consumer service and retail experience to help us realize our potential.”
SquareTrade’s prior investors include Weston Presidio Capital and JP Morgan Partners. Financial Technology Partners LP served as exclusive financial and strategic advisors to SquareTrade.
About Bain Capital
Bain Capital, LLC ( www.baincapital.com) is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, high-yield assets and mezzanine capital with approximately $60 billion in assets under management. Bain Capital has a team of over 350 professionals dedicated to investing and to supporting its portfolio companies. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 450 companies in a variety of industries around the world. Bain Capital Ventures (www.baincapitalventures.com) manages $2 billion of assets and has over 70 active portfolio companies. Bain Capital has a long history of investing in branded technology and consumer service companies, such as Bluestem Brands (Fingerhut), Bright Horizons, DoubleClick, Lala, LinkedIn, Michaels, Rent The Runway, Shopping.com, Skillsoft, Staples, Survey Monkey and Toys R Us. The firm has offices in Boston, Palo Alto, New York, Chicago, London, Munich, Tokyo, Shanghai, Hong Kong and Mumbai.
SquareTrade is the top-rated protection plan trusted by millions of happy customers for its fast and exceptional service. SquareTrade protects mobile devices, laptops and tablets, and other consumer electronics and appliances from malfunctions, accidental damage and life’s frequent mishaps. Unlike old-fashioned warranties, SquareTrade is designed for today’s consumer and uses innovative technology to deliver a zero hassle claims process. SquareTrade has more than 190,000 fans on Facebook, consistently wins industry awards and receives thousands of 5-star reviews for its legendary customer service. Top retailers around the world offer SquareTrade, achieving a 200% increase in sales on average and happier customers. SquareTrade’s rapid transformation of the warranty industry attracted one of the largest private capital raises in 2012, with a $238 million round led by Bain Capital and Bain Capital Ventures. Headquartered in San Francisco and London, SquareTrade is privately held. For more information, go to www.squaretrade.com.